Saturday, December 15, 2012

An Element In Play

"And it's that which makes me say that the G Recession and the G Depression are the same, or at least very similar. Back then it was the mechanisation of agriculture (the arrival of the tractor in large numbers for example) and the electrification of manufacturing. These increased labour productivity faster than other areas of the economy could absorb that newly surplus labour. I think we could argue that some combination of globalisation and the internet (they are, to some extent, the same thing. The internet allowing the globalisation of exceedingly cheap communications. Add containerisation which allows for extremely cheap shipping and we've pretty much got it.) are causing the same sorts of problems today. Labour productivity is rising faster than the ability of other areas of the economy to absorb that newly surplus labour."

No comments:

Post a Comment